Mirae Asset NYSE FANG+ ETF

 

The investment objective of the scheme is to generate returns, before expenses, that are commensurate with the performance of the NYSE FANG+ Total Return Index, subject to tracking error and forex movement. 

The Mirae Asset NYSE FANG+ ETF will be managed passively with investments in stocks in a proportion that match as close as possible to the weights of these stocks in NYSE FANG+ Index.

The NYSE FANG+ Index is an equal-dollar weighted Index designed to represent a segment of the technology and consumer discretionary sectors consisting of 10 highly-traded growth stocks of technology and tech-enabled companies.

About NYSE FANG+ Index : 

NYSE FANG+ Index constitutes of 10 stocks – Alibaba, Facebook, Alphabet, Apple, Baidu, Nvidia, Amazon, Netflix, Twitter, Tesla.

The NYSE FANG+ Index is an equal weighted Index designed to represent a segment of the technology and consumer discretionary sectors consisting of highly-traded growth stocks.

NYSE FANG+ Index sector and stock weighing

Stock Name	Weight (in %)
Baidu	14.4
Twitter	12.1
Alphabet	11
Netflix	9.4
NVIDIA	9.3
Apple	9.1
Tesla	9.1
Amazon	8.9
Facebook	8.6
Alibaba	8.3

 The periodical rebalancing occurs quarterly ○ Weight of each index constituents is set at 10% (equal weigh) on the date of rebalancing ○ Between the two-rebalancing quarter, the weight of each index constituents may drift due to price movement observed for each stock.

FANG+ : 

• Opportunity to take focused exposure in global innovation leaders. Single portfolio that potentially capture today’s global innovation leader.
• Companies that capture the current mega-trends. Megatrends are structural shifts that are long term in nature and are transformative force that has potential to change global economy, business and society.
• Geared for the future. 
• Focused to be a serial innovator and disruptor with an aim for excellence. Relentless focus on innovation may enable these companies to dominate in future too.
• Focused to keep an eye on external opportunity and threat. Along with Research & Development (R&D), FANG+ constituents are keeping an eye on potential opportunity and threat to their business.
• Disruptions change but producer of the disruptions are constant: NYSE FANG+ Index. In past, present or future, FANG+ companies were and are likely to be at the forefront of disruptive technologies. 
• NYSE FANG+ Index: At forefront of innovation then and now. FANG+ companies caused disruption before and are geared to do it in future too.
• FANG+ Stocks: Doing more than you think!. 
• Companies like Alphabet are focusing on other bets to find its next big revenue stream. Amazon and Alibaba are global giants of e-commerce with steady focus on other revenue stream too. Facebook and Apple both are diversifying at accelerated pace from their existing product line

Power of 10: 

• The combined power of NYSE FANG+ Index constituents
• Market Cap $7.7 Tn Could have been 03rd largest country in terms of GDP.
• Revenue $1.09 Tn 3x of Indian government total receipt FY 2019 -2020.
• Cash $500 Bn 85% of total forex reserve held by RBI in 2020.
• Net Income $179 Bn Exceeds combined net income of all Indian equities.
• FANG+ stocks aims to capture growth and scale across multiple parameters.

WHY INVEST IN THE FUND

• Focused and equal weighted exposure in innovative high growth technology, internet and media stocks
• Portfolio of companies which are geared to participate in future technology disruptions
• Provides passive international exposure predominately to US market at low cost
• Provides avenue to benefit also from INR depreciation

investing in US stocks